[Source: File Photo]

Minister for Economy, Aiyaz Sayed-Khaiyum says the pricing crisis in Fiji is a result of a volatile cocktail of global development.

While delivering the 2021-2022 Revised Budget in Parliament, Sayed-Khaiyum says a major issue in all conversations across the country was the rise in the price of food and other essential items.

He says there was a worldwide explosion of consumption coming out of the COVID-19 pandemic, paired with trillions of dollars injected into economies by wealthy nations, which produced consumer demands of historic proportions.

He says the Russian invasion of Ukraine has also initiated a humanitarian and economic disaster, affecting prices for many essential raw materials such as wheat, oil and gas.

Sayed-Khaiyum says despite being far removed from the conflict, the economic shockwaves has landed as a tidal wave on the shores of small island states such as Fiji.

“Small pacific nations are even more exposed because we are the most import-dependent nations in the world. On average, SIDS have a 90 % dependency on imported petroleum fuel and import 60% or more of their food needs.”

He says with the hike in global wheat prices, Fiji can only purchase wheat at the world market price.

As for oil, Sayed-Khaiyum says Fijians are driving imported cars on imported fuel and the seemingly distant events on foreign soil have a direct impact on the country.